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Tax Flash Bulletin

2022 Nova Scotia Budget Highlights

INDIVIDUALS

Personal Tax Rates

The budget did not contain any changes to provincial personal income tax rates or the provincial tax brackets. The 2022 brackets remain the same as 2021 because Nova Scotia does not index its provincial tax brackets to inflation.

Nova Scotia Tax Brackets and Tax Rates

2021 Taxable Income 2021 2022
$0 to $29,590 8.79% 8.79%
$29,590 to $59,180 14.95% 14.95%
$59,180 to $93,000 16.67% 16.67%
$93,000 to $150,000 17.50% 17.50%
Over $150,000 21.00% 21.00%

Top Combined Nova Scotia and Federal Rates

Income Type 2021 2022
Salary, interest, pension, foreign 54.00% 54.00%
Eligible dividends 41.58% 41.58%
Non-eligible dividends 48.28% 48.28%
Capital gains 27.00% 27.00%

Top rates apply to taxable income over $221,708 ($216,511 for 2021) Based on known federal and provincial rates at March 29, 2022

Introduction of Children’s Sports and Arts Tax Credit

The budget introduces a $500 refundable tax credit to help parents offset the costs of artistic, cultural, and physical activities for children under the age of 19. This measure is effective for the 2022 income tax year and subsequent years.

The tax credit will apply to eligible expenditures for programs in literary arts, visual arts, performing arts, music, media, languages, customs, and heritage; as well as organized physical activities and programs.

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